Industry Overview and Analysis SAICE Networking - Icivil Enjiniyering December 2016 Vol 24 No 11
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Icivil Enjiniyering
December 2016 Vol 24 No 11
Industry Overview and Analysis
SAICE Networking
Reinforced Earth
Applications
Roads Railways
& Motorways
Rivers Ports
& Waterways & Coastal works
Water Dams
management & Reservoirs
Mining Construction
& Minerals materials
FIRST IN MSE
Energy Industry
Land development Airports
& Building
© Photo Credits: Photo Gallery Soletanche Freyssinet - 2016
Waste Environmental
management
Military Sports
& Leisure
Bridges
Design In partnership
engineers through Contractors
Reinforced Earth®
a Design of MSE structures a Tender assistance
Mentone Media Centre
1 Park Road, Richmond,
a Stability assessment a Material supply
Johannesburg a Cost analysis a Construction support
South Africa a Tendering
Tel: +27 11 726 6180 a Specifications
www.recosa.co.za
Client requirements
www.terre-armee.com
Global Presence Local Experience
FROM THE CEO’S DESK
Staying alive
I’ve always bought into the concept of economic freedom. As South Africans we need to do more to root out the iniquitous
Economic freedom is entwined in the fabric of the Freedom rhizomes of crime – poverty, lack of education, lack of job creation,
Charter, which was adopted at the Congress of the People on lack of adequate policing, poor community awareness. Some of the
26 June 1955. It’s there in the South African Constitution as well. Ten Commandments, it seems, are dead in South Africa.
I am just waiting for Juju to get rid of the reckless race rhetoric, If you are reading this little piece, you are probably employed
and exchange it for rhetoric on innovation, art and setting hands in the most beautiful profession – civil engineering. You get
to that old rugged plough. As younger people, myself included, to serve people by improving the quality of life through the
we owe our country – not the other way around. We owe our development of infrastructure. And you get paid to do it, too.
resourcefulness and our vuma. When I consider young people, In South Africa – because we straddle both First World and
especially the Black taxed, I believe we are delivering on that developing economies – we get to do innovative engineering,
obligation. When you take a public position on imperatives, hold providing unique solutions to the assortment of infrastructure
leaders and systems accountable, struggle through societal preju- engineering challenges. This region is prime territory to become
dice and economic bias – contrary to popular belief, this is not accomplished engineering practitioners and to make a difference
wishbone philosophy, this is backbone stuff. The young people as civil engineering professionals. The prospect of making an
make me realise the dream of the New South Africa is alive. impact through civil engineering in South Africa is alive.
There are too few countries in the world that provide stand-up So what is this about? I am writing to you from New Zealand,
comedy in parliament like we do. But we need to give our parlia- and I’ve had some intriguing encounters about South Africa. I’ll
mentarians credit for getting the business done, too – consider “pay stop at that. Nevertheless, I’ve been thinking about the quality
back the money.” The fun we see in parliament, together with expo- of life back home – politics, property, safety and security, educa-
sure in the press on state capture, lending downgrades, shebeens, tion, sport, our people, music, the taxis, e-toll, and so on. Quite
Zumadom, and so on – this is evidence of transparency in a working frankly, we are spoilt in Mzansi. I have been pondering the things
democracy. Equal opportunity, freedom of speech, tolerance and that are important to me, like making a difference in the lives of
other manifestations of democracy ironically work this way, too. others through my work, my career, education, and my family,
Perhaps an example might help make the point. The great thing and, after having travelled to more than 35 countries, my South
about living in South Africa is freedom of worship and religion. You Africa has a soul, and is alive to meaning and purpose – if one
can worship a frying pan if you wanted to and nobody will bother has the appetite for it.
you. This lavish freedom encourages expression of worship, and It’s Christmas – count your blessings. Merry Christmas and
more so, because we live in a democratic society, it is required of happy holidays!
the rest of us to practise tolerance of that expression. This is what a
free and democratic society is all about – and a mature society too.
Transparency works that way, too. Those who want rain must also
accept mud. This is the premise upon which we relish democratic
liberties. Our young democracy is pulsing with life.
There are days when I have breakfast with my family in
Johannesburg, lunch in Durban, late-afternoon tea in Cape Town
and back for dinner with my family. I could do this in Europe
with some difficulty. Furthermore, having developed a penchant
for the outdoors, I am mesmerised by the beauty of the Eastern
Cape, Limpopo and Mpumalanga, together with the variety of
breath-taking mountains and charming little towns like Clarens,
Coffee Bay, Graaff Reinet, Montagu, Prince Albert and others.
I must not forget the Mediterranean in Cape Town, India in
Durban and New York in Johannesburg. As a single destination,
South Africa is alive with travel diversity and a salubrious cli-
mate under which to do it.
Here’s the one thing that has me stumped – and quite frankly,
being a father it scares me too. We need to contend with crime,
especially violent crime. We should not have to live in anxiety. Life
is sacred, so too are our properties, belongings and relationships.
Civil Engineering December 2016 1
Icivil Enjiniyering
December 2016 Vol 24 No 11
Industry Overview and Analysis
SAICE Networking
Icivil Enjiniyering = IsiZulu
ON THE COVER ON THE COVER P4
Devotech Africa is continually developing
cutting-edge civil engineering design Devotech’s iDAS software and their support team are instrumental in changing the workflows in their
automation software that fully supports customers’ businesses, with time savings of over 400% having been achieved on some projects
Building Information Modelling (BIM)
workflows for the most complicated
design scenarios imaginable. The photo
shows the Nseleni Bridge on the P496
(also known as the John Ross Highway)
FROM THE CEO’S DESK
between Empangeni and Richards Bay.
(Photo credit: Royal HaskoningDHV) Staying alive ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 1
South African
Institution of
ON THE COVER
Design automation offers huge time saving on civil engineering projects������������������������������������������� 4
Civil Engineering
Icivil Enjiniyering
YEAR-END MESSAGE FROM SAICE’S PRESIDENT
December 2016 Vol 24 No 11
May peace, joy and purpose fill you��������������������������������������������������������������������������������������������������������������������������������������������������������������������� 6
PUBLISHED BY SAICE
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http://www.saice.org.za | civilinfo@saice.org.za
CHIEF EXECUTIVE OFFICER
Manglin Pillay Pr Eng
INDUSTRY OVERVIEW AND ANALYSIS
manglin@saice.org.za
Game Changers�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 7
Tel 011 805 5947/8
EDITOR
Verelene de Koker
verelene@saice.org.za
Quantity surveying trends for 2017�������������������������������������������������������������������������������������������������������������������������������������������������������������������10
Tel 011 805 5947/8, Cell 083 378 3996
EDITORIAL PANEL
Marco van Dijk (chairman), Irvin Luker (vice-
chairman), Chris Herold (president), Manglin Pillay
CESA's BECS: Times still tough for consulting engineering industry���������������������������������������������������������12
(CEO), Steven Kaplan (COO), Johan de Koker, Andile
Gqaji, Gerhard Heymann, Jeffrey Mahachi, Avi
Menon, Jones Moloisane, Beate Scharfetter, Phuti
Seopa (corresponding), Marie Ashpole, Verelene
2017 – a better year for construction �����������������������������������������������������������������������������������������������������������������������������������������������������������14
de Koker (editor), Elsabé Maree (editor’s assistant),
Rebekka Wellmanns (editor’s assistant),
Barbara Spence (advertising)
ANNUAL SUBSCRIPTION RATE
SA R675.00 (VAT included), International US$140.00
SEIFSA’s monitoring service continues to support
ADVERTISING
Barbara Spence, Avenue Advertising
the built environment professions������������������������������������������������������������������������������������������������������������������������������������������������������������������������15
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Cell 082 881 3454
Fix the pipeline! ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������17
DESIGN AND REPRODUCTION
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The South African Institution of Civil Engineering
accepts no responsibility for any statements made or
SAICE-PDP continues to make great strides in capacity building initiatives�������������������������������� 20
opinions expressed in this publication. Consequently
nobody connected with the publication of the magazine,
Give that man a Bells!������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 27
in particular the proprietors, the publishers and the
editors, will be liable for any loss or damage sustained
by any reader as a result of his or her action upon any
statement or opinion published in this magazine.
ISSN 1021-2000 Government reaches transformative agreement
with major construction companies ���������������������������������������������������������������������������������������������������������������������������������������������������������������� 29
P64
FOCUS ON SAICE NETWORKING
THE WORLD ACCORDING TO SAICE
Introduction �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������31
Quick finder �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������32
Statutory bodies and associated structures���������������������������������������������������������������������������������������������������������������� 34
Discipline-specific bodies ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 41
P20
International bodies ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 53
Tertiary institutions where civil engineering can be studied �������������������������������������������������������������59
Additional acronyms and abbreviations
relevant to the engineering environment��������������������������������������������������������������������������������������������������������������������������� 62
DEALING WITH READYMIX CONCRETE
Testing readymix concrete ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������63
SAICE AND PROFESSIONAL NEWS
YMP on the road again!���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 64
SAICE International Bridge Building Competition ������������������������������������������������������������������������������������������������ 66
Letter��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 68
SAICE Training Calendar 2017�������������������������������������������������������������������������������������������������������������������������������������������������������������70
CARTOONS
Civillain by Jonah Ptak������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 33
Closing the vote on our cartoon caption competition����������������������������������������������������������������������������������� 69
P66
Civil Engineering December 2016 3
ON THE COVER
Design automation offers huge time saving
on civil engineering projects
INTRODUCTION rehabilitation; advanced site grading; and stormwater, sewer, water
Local company Devotech Africa is continually developing networks and bulk water networks, complete with analysis, and
cutting-edge civil engineering design automation software that without leaving the engineer’s AutoCAD® Civil 3D® user interface.
fully supports Building Information Modelling (BIM) technology iDAS has the ability to design a complete road network
for the most complicated design scenarios imaginable. within seconds. The same functionality is also applicable to pipe
Jaco Viljoen, Managing Director of Devotech Africa, ex- networks, stormwater catchments, sewer connections and inter-
plains: “It is becoming increasingly difficult and complex to section design for a complete township with a simple selection of
deliver fast-tracked projects on time. To enable engineers to AutoCAD® base objects such as polylines. Artificial intelligence
deliver projects on time, and to also evaluate alternative designs, allows one to complete designs in a fraction of the time needed
they need software that can automate the design processes. It is when using conventional design software and methods.
even more important to be able to design all facets of the project iDAS converts one’s AutoCAD® Civil 3D® into a fully BIM-
in one environment, without the need to export design compo- supported design application, allowing usage of all the facets of
nents between modules or other external software. The days of design, without importing or exporting data to other design or
drawing CAD plans are long gone. Plans should be a by-product analysis modules or applications. iDAS has been developed with
of the design, and should be dynamically updated in line with South African standards built in, but also allows the utilisation of
any design changes. The requirement to deliver projects that any standard, anywhere in the world. This technology has been
are supported by BIM is increasing internationally – the United taken up rapidly by companies from South Africa, the United
Kingdom, for example, demands BIM-supported designs." Arab Emirates, New Zealand and Australia.
iDAS builds on top of the AutoCAD® Civil 3D® database, and
FOCUS ON CUSTOMER NEEDS allows one to share one’s design with other designers who do not
Over the years Devotech Africa has been a leader in developing have the iDAS product. They in turn can edit and change the
new technologies for civil engineering design processes. The design before returning it for re-analysis, or for further design
company has completely changed the way design is done. Their adjustments to be made with iDAS, based on the adjusted data.
software development is focused purely on the needs of their This allows designers complete freedom to share their designs
customers, and they believe that this is the reason for their suc- anywhere in the world on the AutoCAD® Civil 3D® platform,
cess in the civil engineering industry. Their software (iDAS – without losing any design or analysis input or output.
Infrastructure Design Automation Suite) and their support team
have been instrumental in changing the workflows in their cus- ROADS
tomers’ businesses, to the extent that time savings of over 400% on iDAS builds road models based on road centrelines (polylines
project design and drafting have been achieved. The automation or alignments). The automation includes the creation of vertical
of designs allows one to model large numbers of civil engineering alignments based on the natural ground profiles, cross-sections
road and pipe networks in a few minutes, compared to weeks using and long-sections, with only some fine-tuning to be done by the
old technology software. iDAS is rapidly becoming the industry engineer. The long-sections and cross-sections are developed
standard for civil engineering locally and internationally. based on client standards, with all design information immediately
available. Design standards for SANRAL (South African National
iDAS (INFRASTRUCTURE DESIGN AUTOMATION SUITE) Roads Agency Limited) and other authorities are already built
iDAS provides the engineering industry with automated design into iDAS, allowing the engineer to model dual-carriageways,
functionality within the AutoCAD® Civil 3D® interface. iDAS al- single-carriageways or township roads in seconds. Quantities for
lows the automated design of highways, township roads and road each road model are immediately available, and are dynamically
4 December 2016 Civil Engineering
driven by the particular road model. Intersections are built based erven connections. (A full report of connection depth, etc, would
on engineering principles, and the final plans can be generated by be available from the sewer manager.)
selecting single or multiple alignments. iDAS makes the creation
of final design plans a hands-free exercise, with very little input WATER
needed from the engineer. Approximately 80 township roads iDAS supports both bulk water systems and reticulation net-
can be modelled in less than five minutes, and their final plans works. With iDAS the engineer is able to also analyse bulk and
generated in about ten minutes. Devotech Africa’s intelligent reticulation systems as a unit.
SANRAL cross-section assemblies allow the design of a complete
dual-carriageway without manually specifying regions throughout ROAD REHABILITATION
the length of the road. Medians and super-elevation, as well as cut- iDAS has a dedicated module for road rehabilitation that also
and-fill conditions, are applied for the complete length of the road supports panoramic images for road investigations.
through one assembly. Kerbs, barriers and drains are automatically
added to all long-sections, and will update dynamically with any SUPPORT FOR BIM
changes to the road design. iDAS stores all design data and objects within AutoCAD®
Civil 3D® objects in a single DWG drawing file. This means that
STORMWATER design files are always BIM-compatible and in an international
The creation of a stormwater network can also be done from a file format, enabling teams to work interactively on designs
selection of polylines. iDAS will calculate the outfall position, without the need to export data.
or the engineer can specify the outfall position manually. The
grades of all branches are calculated based on design criteria CASE STUDY
specified by the engineer. Flows from catchments are calcu- In a recent case study, iDAS was able to complete a large-scale
lated based on the catchments and flow paths, and recalculated project comprising more than 600 roads, and various intersec-
dynamically with any changes. iDAS not only supports dual tions, stormwater systems and attenuation ponds in less than
drainage systems, but can calculate the flow depth on road eight weeks. Originally the estimated delivery time of this pro-
surfaces, and can incorporate retention/detention ponds and ject was more than eight months. “This case study confirmed
rivers in the analysis as a combined model. Automatic sizing that using our new iDAS technology, with proven workflows
of pipes can be applied to the whole network, and is driven by and implementation, drastically impacts on our civil engi-
design parameters that are easily edited on a design criteria page. neering customers’ profits,” concludes Viljoen.
Automatic pipe branches are developed, and long-sections cre-
INFO
ated with all design information, such as flow, velocities, grades
and inverts. Final plans for these long-sections can be generated Jaco Viljoen
for the entire network by using iDAS’s plan production wizard. Managing Director
Devotech Africa (Pty) Ltd
SEWER +27 12 547 7873
The sewer network can be designed in the same way as a storm- jaco@devotech.co.za
water network, but also allows for the automated calculation of www.devotech.co.za
Report view from iDAS Stormwater Manager
Civil Engineering December 2016 5
YEAR-END MESSAGE FROM
SAICE’S PRESIDENT
May peace, joy and
purpose fill you
ECSA, and severe drought (and floods!), which have exposed the
consequences of accumulated years of de-professionalisation in
all three tiers of government.
Visits to most of our Divisions and Branches (where we were
made to feel extremely welcome) were really illuminating. Each
regional visit, for example, included meetings with the local
Branch, consulting firms, government departments and univer-
sity engineering faculties.
The list of concerns of hard-pressed consulting firms was
always topped by the lack of technical capacity in the public sector
(resulting in decision-making paralysis and poor management)
and abysmal procurement systems (resulting in an untenable
downward spiral in fees, questionable appointments and degraded
fitness-for-use). Despite these massive obstacles, compounded by
South Africa’s economic woes, hard-pressed firms endowed with
bright, innovative and determined engineers (the hallmark of engi-
neering) are finding ways to cope, and even flourish.
National Treasury’s new procurement policy, with buy-in from
SAICE, was enacted earlier this year and training in its use is under
way. This should go a long way towards redressing the procurement
SAICE’s 2016 presidential couple, Chris and Marina, wish readers
a very happy year-end break! problem. Lack of public sector capacity will take a lot longer to solve,
although some promising contacts are being pursued.
Engineering faculties have been hard hit by the
Wow, what a year this has been! One of the privileges I enjoyed #FeesMustFall unrest, which has threatened to erode educational
was to get a bird’s-eye view of the big picture, and also to drill quality and led to the freezing of some lecturing posts. But here
down and appreciate just how much is involved in the myriad of again, the enthusiasm of the bright young minds who are being
essential tasks that are being accomplished on our behalf by our nurtured by bright not-always-so-young professors is something
highly motivated and hard-working National Office staff. to behold.
But it does not stop there. We are also blessed by a team of So I am happy to be able to hand over the reins of a thriving
dedicated and competent volunteers who render a wide variety of organisation that is stronger than it was a year ago, and that will
services to their fellow engineers, ranging from guiding the ship continue to rise above every challenge and meet every opportu-
through sometimes very murky and stormy seas to plain hard nity that 2017 brings our way.
work to make things happen. Above all else, keep your vision. God didn’t place you here for
Sure, I got to recognise some of this before 2016 through nothing. He has a fulfilling purpose and plan for your life. Find it
participation in SAICE’s Water Division, Executive Board and and accomplish it.
Council. But this year was a real eye-opener as to just how much May the peace, joy and purpose that only our Lord can give
is happening. I don’t know if 2016 is unique (I suspect not), but us, fill you, your home and all your loved ones.
it is amazing how fast events unfold and need to be dealt with.
This year we had to face the fallout of #FeesMustFall, a series of Dr Chris Herold
massive economic and political crises, Hlaudi-like power plays in chris@herold7.co.za
6 December 2016 Civil Engineering
I N D U S T R Y O V E R V I E W A N D A N A LY S I S
Game Changers
How the face of the civil engineering industry has
changed – and how it will continue changing
INTRODUCTION soon to those heady days of the resources
What a ride we have had in the civil engi- boom in South Africa. This should therefore
neering industry the last few years! This be seen as a longer-term market correction.
past year has, however, been filled with Transformation of the built environ-
challenge upon challenge. Yet, somehow ment has largely not taken place, and
we South Africans square up to the chal- there is a signifcant amount of work to be
lenges, face them and overcome them. done to see this sector transform itself.
When writing an article of this nature There has been a growth in black-owned
at the end of the year, when most of us are businesses, but relatively few have risen to
contemplating the new one ahead, one become icons in the built environment.
feels tempted to focus on the negatives Business confidence is low in general,
and lament what should have been. I want and the private sector is hesitant to invest
to take the opportunity to rather look at cash in fixed infrastrucutre. This could
those things that have turned into game be attributed to low levels of confidence
changers in our industry, and those that in the policies portrayed by government,
probably will. The challenge, though, is to and the lack of progress in implementing
have a positive view on this. policy and government expenditure.
When considering an overview of The civil engineering industry has not Werner Jerling
the civil engineering industry, one must performed admirably in recent years. The
consider the industry holistically. The construction of current mega projects, Pr Eng Pr CPM
industry consists of client project spe- such as the Ingula pumped storage scheme
cialists and decision-makers, consulting and the Kusile and Medupi coal-fired Managing Director
engineers and contractors. We are all in- power stations, is costing more than budg- Stefanutti Stocks Structures
separably linked to the success or failure eted for, and the projects are not being
of our industry and the contribution we completed in the envisaged time frames. Business Unit
must make to the success of our busi- We have also unfortunately seen serious Werner.Jerling@stefstocks.com
nesses and our country. safety incidents on a number of projects.
We are plagued by problems that exist
THE CURRENT STATUS QUO the world over. A recent study of the UK
The market for civil engineering design and construction industry indicated the fol-
construction services is depressed and is not lowing critical factors as contributing to
recovering fast. It will probably not recover poor performance:
Civil Engineering December 2016 7
NNLow productivity the way in which the industry operates of a Bargaining Council for the Civil
NNPoor predictability may be found in legislation regulating the Engineering Industry is seen as a positive
NNStructural fragmentation following: game changer in labour relations in the
NNLeadership fragmentation NNPublic management and financing industry (see pp 36–37 in the December
NNLow margins, adversarial pricing mod- NNLabour and employment 2015 edition of Civil Engineering and p 49
ules, and financial fragility NNOccupational health and safety in this edition).
NNInappropriate training funding and NNBroad-based black economic empower- The creative procurement of re-
delivery model ment newable energy by the Department of
NNWorkforce size and demographics NNEmployment equity Energy heralded a new era for procuring
NNLack of collaboration and improvement NNEnvironmental matters capital projects in South Africa. This
culture NNMining and minerals was positively supported by the invest-
NNLack of R&D and investment in innova- NNMunicipal finance and administration ment community and technology sup-
tion NNThe creation of the Construction pliers worldwide.
NNPoor industry image. Industry Development Board The collusion scandal in the con-
In the South African context, the rela- NNRegulation of the built environment struction industry had a significant impact
tively small construction economy and professions. on construction companies. The Voluntary
challenges with low skills levels further Not only has legislation been put in place, Rebuild Programme, recently agreed to
contribute to the poor performance. but the ability of government to imple- between some of the listed construction
On a more positive side, the industry ment and police these laws has improved companies and government (see page 29 in
has been able to deliver a number of very and is still improving. this edition), will hopefully make a positive
successful infrastructure projects in the The execution of a number of mega contribution in improving dialogue and
past. The local industry is, and has been, projects, such as the Gautrain, Gauteng relations with government, and is expected
involved in projects throughout Africa, Freeway Improvement Project, airport to support the growth of larger black-
and has proved its ability to rise to the expansions, the 2010 Soccer World owned construction enterprises.
challenge of projects large and small. Cup stadiums, record-level commodity
South Africa has a legacy of developing prices, and the Eskom capital expansion THE GAME CHANGERS
world-class infrastructure, much of that programme have all changed the way in OF THE FUTURE
by virtue of a strong and competent which the industry operates. These pro- So what will the future game changers
local industry. Much of this capacity and jects had impacts such as the following: be? What must we as civil engineers con-
intellectual property still reside here and NNThe industry grew at a phenomenal rate sider when strategising about the future
remain available to support our economy. – the boom years. of our organisations?
South Africa is by and large not at the NNForeign companies entered the South Environmental changes and the
mercy of foreign players in the civil engi- African market, in particular off the impact of global warming will require
neering industry. base of a global financial crisis which the support and intervention of the civil
arguably had a delayed impact on our engineering industry. Temperature changes
GAME CHANGERS OF THE PAST economy. and water shortages are keenly felt in South
As Clem Sunter and Chantal Illbury tell NNShifts in employment, conditions, ex- Africa. The threat of large storms and rising
us in their Mind of a Fox series of books, pectations and costs took place. sea levels no longer seems speculative.
we need to understand those things that NNCompanies procured plant and new Humanity will depend on civil engineers
are the “rules of the game”, identify the technology. for their survival, and we need to deal with
“flags” (game-changing events) and set NNAlternative designs and construction these issues. The impending water crisis
our scenario planning up in consideration methods entered the country. in South Africa cannot be ignored! “Water
and anticipation thereof. In our industry The boom years in our industry allowed shedding” will make “load shedding” look
those “rules of the game” are surely business owners and founders to realise like a Sunday school picnic. This must be
changing. So what are those things that their investments in the businesses they had treated as a national crisis now. Planning
have played a role in changing the rules built. This was evident in a number of con- and execution of water projects take a long
of the game? The following paragraphs struction company stock exchange listings time, and there is not nearly enough ur-
cover the main game changers of the past and the entry of multinational engineering gency displayed in this regard by politicians
20 years. practices into our market. Ownership and decision-makers in government.
As South Africans we are all proud shifted in many organisations. The delivery of infrastructure (and
of our achievement of peacefully trans- Labour expectations, and the cost the performance of national and local
forming our society into a true democ- of salaries and wages have impacted the government in this regard) is no longer
racy; this surely had to be the number one industry. Low levels of employment and an option; it must happen now, and civic
game changer. the high cost of living have created a lot activism in this respect is marked. It is no
Efforts to redress the ills of the past of tension in the labour market, coupled longer acceptable for government to fail
are embedded in our constitution and in with high expectations and militancy in planning and implementing infrastruc-
legislation that has been put into place. in the labour environment. This created ture projects. The matter of funding will
The legislative environment has thus a taxing labour environment for mega be a significant challenge.
introduced new and necessary laws. projects, as was evident in the challenges New trends in contracting models
Legislation that has significantly changed around the Medupi project. The creation will become inevitable as the ability
8 December 2016 Civil Engineeringof governments to fund infrastructure by competition and the entry of interna- a culture of poor performance and disci-
projects diminishes. The example of tional players into Africa and potentially pline to take hold. This applies to students
the renewable energy programme, South Africa. New contracting models and educators alike. Acquired skills and
mentioned earlier, will invariably find will change the way we deal with wasteful work ethic will in future be a globally
its way into the funding and execution expenditure resulting from poor produc- traded commodity as global mobility in-
of other infrastructure. Cost and time- tivity. We will no longer be able to tolerate creases and language and cultural barriers
certainty in projects in the public and poor productivity, and in the journey to decrease. The businesses of the future will
private space will question traditional improve wages and living conditions we be able to choose from larger potential
procurement and design models. We are will have to solve the problem of poor pools of workers. Industry and educators
already observing this in the manner in productivity. We must realise that this must seriously debate what the engineer
which the professional indemnity insur- does not lie at the feet of the worker of the future must look like. EQ and IQ
ance and risk management practices in alone. As leaders, designers and project will both be valued, and the training of
many of our design houses are changing. managers we are able to create a produc- civil engineers will have to develop not
The worldwide trend for Design and tive environment for workers to excel in. only scientific and technical skills, but
Construct as well as Engineer, Procure Consider the impact of designing and also management skills. A single degree
and Construct (EPC) contracting strate- planning for high productivity. There is will not be a sufficient qualification –
gies will become more commonplace in much to improve in this regard. multiple, diversified qualifications will
South Africa. To deal with this form of Technological innovation will pro- define the successful candidate of the
project execution we will learn new skills, vide the competitive edge, and organisa- future. In the South African context con-
and will learn to collaborate and contract tions will start adopting this at a higher sideration must be given to a more robust
in new and innovative ways. The risk allo- rate. We will see the larger-scale introduc- regime of post-graduate short-course type
cation in projects will undergo a marked tion and implementation of technologies: qualifications, with an element of distance
shift. Higher levels of collaboration and NNAccess to broadband will improve, learning included.
integration between organisations in the which will impact project design and
industry will be driven by the new pro- execution. Mobile and handheld com- CONCLUSION
curement and delivery processes. We will puting will be an advantage. This will Times will forever become more chal-
need to learn how this can be achieved, as also further improve communication lenging. Leadership in our industry will
the model for large conglomerates may be and real-time management and infor- be needed to guide the civil engineering
challenged by effective collaboration be- mation flow. industry through perilous waters. With
tween smaller, specialised, independent NNThe use of precast and repetitive con- our eyes fixed on what can be, rather than
providers of services. struction processes will drive being absorbed by what is or cannot be,
Meaningful transformation will costs downward. we will need to encourage one another to
be achieved in our industry, and the NNBuilding Information Management positively contribute towards the future
workplace will become more equitable. (BIM) will be commonplace. health of our industry.
More than a legislative imperative, we NN5D estimating and the benefit to subse- What will your legacy as a civil en-
must see the simple common business quent construction processes will be a gineer be? What are the game changers
sense therein. The new entrepreneurs will reality. that you will recognise and act upon?
continue to arise and, with support, will NNWired, intelligent structures will be You decide!
develop their emerging businesses into constructed that communicate mainte-
sustainable large construction and design nance and other data to us. Meaningful transformation
firms. The new generation of managers NNNew construction materials will be
and employees come from a generation introduced. The use of composite will be achieved in our
unfettered by the past. Herein we must materials will become commonplace. industry, and the workplace
have faith and choose to adopt a positive Imagine a world where steel as con-
point of view. We have a great country struction material is replaced with will become more equitable.
with fantastic people! Believe it! cheap titanium, for example. More than a legislative
The scourge of corruption threat- NNHigher levels of mechanisation in the
ening the fabric of society is a wolf at the construction process will be inevitable. imperative, we must see the
door, or maybe a hyena in the kitchen NNInnovations in geomatics have not simple common business
already. This threatens to destroy all the come to an end and interesting oppor-
good that has been created and robs us of tunities will still be exploited. sense therein. The new
the will, drive and finances to achieve the In preparing the next generation of civil
entrepreneurs will continue
investment and development we need in engineers we must take note of what their
our country. With a positive view we must future world will require. Here we as to arise and, with support,
believe that this can be turned around South Africans will need to heed warn-
will develop their emerging
and a society built free thereof. Rooting ings being sounded across the oceans
out corruption will truly be a game as we observe what impacts investment businesses into sustainable
changer for South Africa. in education and work ethic have had in
Productivity improvement and India and the Far East. We are doing the
large construction and
better project performance will be driven next generation a disservice by allowing design firms.
Civil Engineering December 2016 9Quantity surveying trends for 2017
BOOM-AND-SLUMP CYCLE veloping in line with other industries.
The construction industry has always Various software packages exist for
been cyclic, enjoying a boom for several quantity surveying, and they should
consecutive years, only to face a slump make the most of suitable technologies.
afterwards. But eventually things pick up Automation of repetitive tasks brings
again. South Africa's last upward cycle greater efficiency, resulting in faster ser-
ended around 2010 in step with the global vice and higher profits. However, tech-
economic crisis. Since then, quantity nology is only a tool and cannot replace
surveyors have been feeling the pinch. sound business advice, solve problems or
Unfortunately, this trend looks set to con- suggest alternatives.
tinue into 2017.
However, quantity surveyors have STUDENT PROTESTS
always been value enablers in the con- The #FeesMustFall movement has called
struction industry. In 2017 they should into question whether or not 2017 would
strive to promote the results they suffer a skills gap due to a lack of gradu-
produce, not just their technical capa- ates. We’ve yet to see how this will affect
bilities. In a down economy, investors quantity surveying. However, the con-
hope to do more with less, and quantity struction industry is a cornerstone of the
surveyors are in a prime position to help South African economy. The government
Larry Feinberg them reach that goal. The price of their is well aware of the talent required to
services are easily offset by the cost keep it strong, and there is a huge drive to
Executive Director savings achieved from their advice on develop skills in all fields. The expectation
ASAQS sensible construction choices, such as therefore is that there will in fact be suf-
cost-effective substitutes or avenues for ficient expertise next year.
director@asaqs.co.za realising lower building life cycle costs.
So, quantity surveyors can thrive, but GREEN ENGINEERING
they will need to work harder to build In the past, green buildings were as-
awareness of the value they add. sumed to cost nearly 60% more than
traditional ones. But a recent study by
REVISED CONSTRUCTION SECTOR ASAQS, the Green Building Council
CODES of South Africa and the University
Another notable trend for 2017 is the of Pretoria, using data from 54 green
Construction Sector Charter Council’s star certified office buildings around
revised construction sector codes. The the country, shows that costs actually
new codes are designed to bring the average around 5% more, and may drop
industry in line with the black economic as low as 1.1%. That is a small price to
empowerment and transformation tar- pay for protecting our future. In 2017,
gets set by the Department of Trade and quantity surveyors should take the initia-
Industry. While the codes are still open tive and recommend sustainable building
for comment, quantity surveying firms practices and materials.
should familiarise themselves with the
codes to ensure they are prepared in the CONCLUSION
coming year. While the forecast for 2017 is not ideal,
there is a greater need for quantity sur-
SOFTWARE DEVELOPMENT veying than ever. By leveraging every op-
Technologies available to the quantity portunity and promoting their cost-cutting
surveyor appear set to continue de- guile, quantity surveyors will thrive.
10 December 2016 Civil EngineeringdŚĞƐƐŽĐŝĂƟŽŶŽĨ
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QuanƟty Surveying…
…at the heart of
every successful
construcƟon
project
Find out more…
info@asaqs.co.za T 011 315 4140/1
www.asaqs.co.za F 011 315 3785
P O Box 3527 Halfway House 1685 I Suite G6 Building 27
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CivilRoad
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Vorna
Engineering Valley2016
December
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Midrand
11CESA’s BECS:
Times still tough for consulting
engineering industry
Contractors have for some time policy alongside a sharper than expected
Chris Campbell Pr Eng reported on the slow pace at which con- increase in inflation.
tracts are awarded, as well as the slow
CESA CEO roll-out of government projects. This GROSS FIXED CAPITAL FORMATION –
chris@cesa.co.za creates disconnect between opinions DETERIORATING
expressed by engineers and contractors, Growth in gross fixed capital formation
INTRODUCTION where projects are in planning stages, lagged GDP growth in 2014, and con-
The Consulting Engineers South Africa supporting earnings in the consulting tracted by 0.3% on average for the year,
(CESA) Biannual Economic and Capacity engineering industry, but implementa- compared to a 1.5% increase in economic
Survey (BECS) for the period January to tion is slow. growth. Investment in fixed capital for-
June 2016, recently released, indicates that mation showed a mild recovery in 2015,
times remain tough. Confidence levels TRANSFORMATION OF THE up 1.4% on average, supported by a 6%
amongst firms have deteriorated over the INDUSTRY – SIGNIFICANT PROGRESS increase in investment by general govern-
last few years, alongside modest increases The appointment of Black executive ment. Investment growth from SOEs
in fee earnings. The outlook for gross staff (Black, Asian and Coloured staff) and the private sector remained muted,
fixed investment has deteriorated and is increased to 40.8% from 39.5% and 38.0% increasing by 0.8% and 0.4% respectively.
expected to fall behind GDP growth in the in the previous two surveys. The appoint-
next three years. Over 537 firms employing ment of Black executive staff has steadily FEE EARNINGS – MUTED
just over 24 315 staff, who collectively increased from 28.1% in the June 2012 Fee earnings in the first six months of
earn a total fee income of R25 billion per survey. This shows real progress in terms 2016 fell marginally by 0.2% compared to
annum, are members of CESA. of industry transformation. There has also the last six months of 2015, following the
Three key factors continue to influ- been a steady improvement in the ap- increase of 6.0% in the previous period.
ence the global outlook – the gradual pointment of women at an executive level. Larger firms reported a stronger decline
slowdown and rebalancing of the Chinese of 5.3%, while medium and smaller-sized
economy, lower prices for energy and BUSINESS CONFIDENCE – LOW firms improved earnings by 15.1% and
other commodities, and the gradual tight- Confidence in the consulting engineering 10.6% respectively. This follows a similar
ening of the US monetary policy. sector generally lags business senti- trend reported in the previous survey,
The South African economy has faced ment. Business confidence is currently whereby larger firms recorded more
several headwinds in 2016, some of which at 42, as at the third quarter of 2016. muted growth compared to a more robust
were expected, while others were not. This continues to depict negative market increase in earnings by the medium and
Global factors play a much bigger role sentiment, which does not bode well for smaller-size firms. Fee income stabilised at
than may be suggested, with the sluggish private sector fixed investment. Business R25 billion, annualised, at current prices as
global economy offering little relief in the confidence is negatively impacted by at June 2016. Respondents expect earnings
demand for South African goods and ser- poor economic growth, threatened by a to increase by 6% in nominal terms during
vices, which has waned considerably over looming recession, increase in political the last six months of 2016, compared to
the last two to three years. instability, and tightening of monetary the first six months of the year.
12 December 2016 Civil EngineeringThe contribution to fee earnings by significantly weaker in the last six months Unlocking greater private sector
the private sector improved slightly to of 2015, compared to expectations in the participation is seen as a critical element
41.0% (from 40.3% in the December 2015 June 2015 survey. Since then there has to fast-track delivery, which will support
survey), but is largely on par with the been some improvement with the net engineering fees and as such engineering
average over the last two-year and five- satisfaction rate improving to 75% in the development in the industry. Many of the
year periods. first six months of 2016 (from 39.4% in projects highlighted in the NDP can be
The public sector remains the most the December 2015 survey), with similar carried out by the private sector through
important client to the industry, but due levels projected for the next 12 months. public-private partnerships.
to the decrease in central government Levels remain well below the average over Service delivery, especially at mu-
(down from 5.9% in December 2015 to the last five years, and are recovering from nicipal level, remains a critical burning
4.0% in the current survey), the contribu- historically low levels, surpassed only by issue. Lack of attention to maintain infra-
tion by the public sector moderated to the 1998/99 recession caused by the Asian structure poses a serious problem for the
58% from 60%. financial crisis. industry, with infrastructure being left to
deteriorate to such a state that mainte-
PAYMENT – A SERIOUS ISSUE INDUSTRY CHALLENGES – nance becomes almost impossible.
Payment remains a serious issue, having PROCUREMENT THE BIGGEST Fraud and corruption are affecting
a broad-based effect on firms operating CHALLENGE the ethos of our society, with a lot of
in the industry. After having shown some Regulation issues, including the procure- talk and little action accompanying
improvement in the December 2015 ment of consulting engineering services, the growing evidence of corruption.
survey, the percentage of fees outstanding remain one of the biggest challenges faced CESA is aware that members are under
for longer than 90 days as a percentage by the industry. Unrealistic tendering pressure from contractors and corrupt
of total estimated income (including late fees remain a concern for members, while officials to certify payment for work
payments) deteriorated to an average of the extended time it takes in which to not completed. This is regarded as an
25% from 23.0% and 24.5% in the previous finalise a proposal is affecting profitability extremely serious matter, and CESA will
two surveys. At 25% this is the highest in the industry. The quality of technical remain relentless in holding those in
recorded level since 1999. personnel is argued by some firms to have power accountable.
deteriorated, putting greater risk on the
INDUSTRY CONFIDENCE LEVELS – built environment sector. Skills shortage QUALITY MANAGEMENT
WELL BELOW AVERAGE is regarded as one the most significant SYSTEM (QMS)
Confidence levels among firms have institutional challenges faced by the pri- All CESA member firms are required
deteriorated over the last few years, vate and the public sector. to have a QMS as a condition of CESA
alongside modest increases in fee earn- The involvement of non-CESA mem- membership. The majority of firms re-
ings. The current weakening in the bers in government tenders and procure- ported to have a QMS system in place
confidence index, depicting less than ment continues to threaten the standard (97%). While all the larger firms have
satisfactory conditions, may therefore and performance of the industry. Firms the QMS in place, 93% of the micro
predict weaker growth in earnings. In from beyond South African borders are enterprises that responded to the survey
the December 2015 survey confidence tendering at rates that are not competitive currently comply, up from 88% in the
levels fell to their lowest level in 16 years, for local firms. December 2015 survey.
Civil Engineering December 2016 13
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POISED TO GROW for readymix producers is relatively low.
South Africa’s economy is poised to grow This has opened the market to unscru-
by between 2% and 3% in real terms next pulous producers who do not produce
year, which will have a knock-on effect in the right quality of readymix concrete.
the building and construction sectors and In a recent market size survey, SARMA
lead the way out of the protracted down- found 344 readymix plants around the
turn the market has experienced. country, representing 139 companies,
This is according to the acclaimed and this total is still growing. It is im-
economist, Dr Roelof Botha, managing portant for specifiers to insist on and
director of GOPA Group SA, who specify quality readymix concrete to
was speaking at the recent Readymix ensure that all producers have a level
Conference, organised by SARMA playing field when tendering.
(Southern Africa Readymix Association), The market size survey has also shown
where he encouraged delegates to look out an increase in the use of readymix con-
for opportunities as the markets turn. crete of 390 000 m3 from 2014 to 2015.
“Despite the largely negative senti- This increase is projected to continue.
ment that exists in South Africa at
present, the economy is still in relatively READYMIX TO AID DELIVERY
good shape, and has in fact faired far Building professionals are being urged
better than other emerging market peers. to harness the amazing characteristics
Due to the diversity of our economy we of modern-day readymix concrete to
have largely ‘ridden out the storm’ thanks build better structures and speed up
Johan van Wyk to sectors such as the agriculture and the delivery of critical infrastructure
services industries which provided a throughout southern Africa.
General Manager counter-balance to ill performers. New techniques, as well as advances
SARMA “Other factors also indicate reasons to in cement technology and admixtures,
be bullish, such as increased gold demand, are allowing readymix producers to tailor
johan@sarma.co.za which is at the second highest level in the their offerings more precisely to produce
history of the world. Just recently China a far wider range of product choices than
purchased 1 400 tons of gold, and Russia ever before. This means that the types of
1 000 tons, amongst others. This is good concrete produced today are suitable for a
news for our mining sector and, as com- greater variety of uses and can be tailored
modity prices begin to swing back up, it to suit exact project requirements.
will get even better,” says Dr Botha. Builders and specifiers need to
On the building front the number of be more keenly aware of the types of
building plans being passed is looking better readymix that can be ordered, and
and will lead to increased activity in future SARMA encourages them to work more
when they are converted to actual building closely with readymix producers in future.
projects. Another indication of improve-
ment is that hardware sales are turning MACRO-ECONOMIC OUTLOOK
upwards. As this is, according to Dr Botha, According to Dr Botha, “There is a lot of
an inherently stable market, the slightest positive and a lot of money to be made.
C
bit of improvement in the economy should We predict that the CPI will go down, and
translate to positive growth in the sector. as a result interest rates will not rise again M
With the advent of new players in the in the near future. At present, our per Y
cement market, the increased competi- capita disposable income ratio is good, the CM
tion has pushed cement prices down. index of manufacturing volume is rising, MY
Similarly, more competition in the and metals prices, of the type mined in
CY
readymix market, coupled with lower ce- South Africa, are up by 20%. That means
ment prices, have pushed concrete prices overall our macro-economic outlook is CMY
down. Unfortunately the barrier to entry better than one reads in the media.” K
14 December 2016 Civil EngineeringYou can also read
